First Time Homebuyers
November 15, 2022Are you feeling overwhelmed by the home buying process? Don’t worry, you’re not alone! When it comes to obtaining a mortgage, you have two options: going directly to your bank or working with a mortgage broker. Let’s take a look at the main differences between the two.
Your bank can only offer you the products and services that they have available, which may not be the best fit for your needs. They may also offer a wide range of interest rates, often with a significant spread between their discounted and posted rates. It’s important to ask yourself, are they really looking out for your best interests or simply trying to make money for the bank?
On the other hand, a mortgage broker works for you and has access to a wide range of lenders, including mono lenders who specialize solely in mortgages. Because these lenders are competing for the broker’s business, they often offer their lowest rates. Plus, a mortgage broker will take the time to review the mortgage thoroughly, ensuring you’re aware of any early payout penalties or fees associated with the product.
One important thing to note is that extremely low interest rates may not be the best product for you, as they may involve undisclosed penalties. With a mortgage broker, you can rest assured that they will provide you with transparent and honest advice.
And the best part? The services of a mortgage broker are completely free to you! That’s right, the broker is paid by the lender once the mortgage funds.
For even more home buying tips and guidance, check out CMHC’s interactive Step by Step Guide at www.cmhc.ca. Don’t let the mortgage process overwhelm you � with the help of a trusted mortgage broker, you can find the best product and rate for your needs.
